Tribunal held that extraction and processing of iron ore amounted to production. The Assessing Officer was to allow claim of additional depreciation. Followed, CIT v. Sesa Goa Ltd. (2004) 271 ITR 331 (SC). Tribunal held that as the amendment was effective from April 1, 2016, it was clearly not applicable to the year under consideration. Considering the plain language of the section, the amendment was not applicable to the year under consideration. The Tribunal being the last fact finding authority, should refrain from adjudication of the retrospectivity or otherwise of the applicability in the amendment. This should be in the domain of superior courts. Therefore, the assessee was not entitled to 50 per cent. of the depreciation brought forward from earlier assessment years. (AY.2014-15)
Vedanta Ltd. v. ACIT (2020) 84 ITR 84 (Delhi)(Trib.)
S. 32 : Depreciation-Additional depreciation-Business of mining iron ore and sale thereof-Entitled to additional depreciation-Putting new assets to use for less than 180 days in previous year-Allowed 50 Per Cent. of eligible additional depreciation-Amendment allowing carry-over to subsequent year applicable prospectively from 1-4-2016-Not entitled to 50 Per Cent. of additional depreciation brought forward from earlier assessment year. [S. 32(i)(iia)]